When the Euro Disintegrates

Thursday, May 13, 2010
By Paul Martin

By Dan Denning
TheDailyReckoning.com
May 13th, 2010

Last week’s right hook to markets with the Rudd Resource Rent Tax (RRRT) was followed up yesterday with a stiff left lawsuit jab to the jaw of Australian banks. “Shares in major banks including Commonwealth Bank and ANZ fell by about 1 per cent after BusinessDay reported they faced one of Australia’s biggest class actions for overcharging on penalty and late fees,” reports Eric Johnston in the Age.

Thus, in a matter of ten days, seven of the ASX/200′s ten largest companies by weighting has had a huge cloud of uncertainty descend on their future earnings prospects. For the materials company (BHP Billiton), it’s the RRRT. For the banks, the $400 million claim against them amounts to 1% of profits, according to Goldman Sachs analyst Ben Koo.

The Rest…HERE

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